Natural gas prices have jumped nearly 25% since December, driven by forecasts of a record-breaking cold January. The National Oceanic and Atmospheric Administration (NOAA) predicts several waves of cold air will hit the US through mid-January, making it one of the coldest months on record.
The expected drop in temperatures will affect over 200 million Americans, particularly in the Midwest, where temperatures could reach -20°C or lower. This poses a risk of frostbite and hypothermia, prompting the opening of warming centers in dozens of states.
Energy analyst Phil Flynn notes that while the US has abundant natural gas supplies, complacency on the demand side has led to an increased risk of infrastructure failure during extreme cold events. “When you get a cold event like this, not only do you see record demand, but then you have the possibility of infrastructure freezing up,” Flynn warned.
According to the US Energy Information Administration, 60% of homes rely on natural gas for space or water heating, with an estimated $80-100 monthly cost in colder climates.
Source: https://www.yahoo.com/news/natural-gas-prices-surge-forecasts-013318174.html